Tesla Motors Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Tesla Motors Case Study Solution

Introduction

Tesla Motors was founded in 2003. The company was named after Nikola Tesla, who is considered as the inventor of the induction motor. The company was founded by Elon Musk, and JB Straubel. Because Musk provided the capital for the company he became the chairman of board, and head of product development in the company Whereas, JB Straubel joined as the CEO.

On the other hand, it can be determined that none of the founders had deep roots in car industry before, and neither had they belonged to a team of professionals in the car industry. However, after large efforts from the founders they successfully completed the team of professionals from the car industry with those who had deep roots, and large skills, and experience in manufacturing of car. Similarly, they also hunted for professionals from the Silicon Valley.

The struggles from the founder and teams resulted in the electric vehicle model S with many unique attributes and which was competitive to the BMW, Mercedes-Benzes, and Porsche. Tesla Model S was the only car that was an electric car, and it was a disruption for the whole industry in many ways. Such as, from World War II, no car company has successfully entered into the U.S. market with mass production.

Tesla’s Model S is the only car that is competitive to the most challenging manufactures. Undoubtedly, Tesla has stimulated new industry, and created competition, and has created demand in the market which in turn forced other manufactures to enter in this industry. However, it is important to know that there are many problems and complexities in the industry that has been resolved by the company. So, it is important to understand vary steps of Tesla into the market, and reasons behind its success as well.

Problem Statement

What is future prospectus for the company, and how could it be more active and proactive given that there is huge competition in the market? And how could it sustain its growth, ensure expansion, disruptive approach and innovation in the industry to attain the competitive, and convert competitive disadvantage into advantage?

Analysis

Model S versus other models

The company’s initial installment of the Roadster model that was an electric car with acceleration from 0 to 60mph in less than four seconds and was much faster than the Ferrari Testarossa, and other recent models of Ferrari as well. Similarly, the difference between the Model S and other cars could be distinguished that other cars run on gasoline, oil, or petrol, but the Model S of the Tesla run on electric power. Since, the car has 7000 cells from the Lithium-Ion batteries in the 18650 factor which is being supplied by Panasonic.

Also, Model S is the only car that could compete with the Audi A6, BMW 5 Series, and other models in the market. It has completely changed the perception of people thinking about the electric vehicles. The Model S has much more improved technology and improved systems as compared to company’s previous model Roadster. However, it can be determined that Model S is completely in-house designed and manufactured, since it has unique attributes because it has rear-wheel drive, it also has some extra features that were not offered by many sports cars as it has offered 17’ touch screen that gave control over all features of the car including air conditioning to the entertainment system.

It is completely different from other cars. It has almost no button but a touch screen from where all drive functions can be controlled. No other car has offered such features. Similarly, the car was also completely automatic because it unlocked when driver approached near the car, an unusual feature was also the lit up of brake lights according to how much car was slowing. Unlike other manufacturers Tesla has its owned sales and distribution centers where staff is hired on salaries rather than on commission.

Competitive Advantage & Disadvantage

The competitive advantage refers to the distinctive competency of the company in some service or the product that gives edge over the competitor in the market. For example, a company offers a product for $100 with many features, and another company offers the same product with same features with no difference at all but at a lower price. So, for former company cost effectiveness is a competitive advantage as compared to the latter that has good features, but is not cost effective.

Furthermore, the competitive advantage of Tesla is a disruptive approach in the market, and being innovation oriented has given competitive advantage to the company in its features. Also, it has managed to be cost effective, and cost-saving while adding new features to the car could increase the costs. Since, company’s approach is always disruptive and innovative, because it also prefers to add customizable components rather than standard components available easily over the counter............

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